Merchant Sanctions Policy

Last updated: November 15, 2021

If Merchant operates a marketplace or is the Merchant of Record for multiple third-party merchants, retailers, contractors, or service providers, Merchant is responsible for administering and maintaining a sanctions compliance program (“Sanctions Program”) commensurate with Applicable Law. For purposes of this Merchant Sanctions Policy, “Merchant of Record” means the entity that is financially and legally liable to Affirm for the obligations, conditions, and responsibilities outlined in the Agreement and the entity which will receive the Payout directly from Affirm, its affiliate, or bank partner, as applicable. Capitalized terms used in this Merchant Sanctions Policy but not defined below are defined in the Agreement.

At a minimum, Merchant’s Sanctions Program should include:

(1) Risk-based monitoring of 3rd party providers utilizing Merchant’s technology, software and/or platform services (“Merchant Contractor”);

(2) Screening against applicable lists to determine Merchant Contractor’s eligibility to offer the Services at time of onboarding and on an ongoing basis; and

(3) Processes and procedures in order to comply with comprehensive country/region sanctions, including the Country-Specific Sanctions Requirements set forth below, in addition to any other screening as required by Applicable Law or as mutually agreed to by the Parties.

Sanctions screening may be performed by a third party on behalf of Merchant, and Merchant will be responsible for the third party’s performance.

Upon request, Merchant will provide Affirm with processes, requirements and any other reasonable information related to Merchant’s Sanctions Program, and Merchant will make commercially reasonable efforts to implement recommendations from Affirm regarding Merchant’s Sanctions Program.

  • As needed, in Affirm’s sole discretion, Affirm may provide Merchant with guidance on Merchant’s Sanctions Program, and Merchant will perform the Sanctions Program for the Affirm Product in accordance with the requirements communicated by Affirm.

Merchant agrees in good faith to notify Affirm in advance of any material changes to the Sanctions Program that could have an adverse impact to Customers or sanctions compliance and to consult with Affirm about any such changes.

Country-Specific Sanctions Requirements

Country

Requriements

United States

All Merchants shall implement their Sanctions Program in line with the
requirements set by the Office of Foreign Assets Control (“OFAC”) of
the U.S. Department of the Treasury. This includes all published lists as
well as any sanctions programs administered by OFAC, including sectoral sanctions.

https://home.treasury.gov/policy-issues/office-of-foreign-assetscontrol-sanctions-programs-and-information

Canada

All Merchants shall implement their Sanctions Program in line with the requirements set forth by the Office of the Superintendent of Financial Institutions (“OSFI”) and the Government of Canada, including such lists and restrictions as are published by the Government of Canada and the United Nations Security Council (“UNSC”) and any sectoral sanctions in place.

https://home.treasury.gov/policy-issues/office-of-foreign-assetscontrol-sanctions-programs-and-information

https://www.international.gc.ca/worldmonde/international_relationsrelations_internationales/sanctions/current-actuelles.aspx?lang=eng

Australia

All Merchants shall implement their Sanctions Program in line with the requirements set forth by the Australian Sanctions Office (“ASO”), including Australia’s Consolidated List and sanctions regimes, as well as any such lists or requirements established by the United Nations Security Council (“USSC”).

https://www.dfat.gov.au/international-relations/security/sanctions/sanctions-regimes

https://www.dfat.gov.au/international-relations/security/sanctions/consolidated-list

https://www.dfat.gov.au/international-relations/what-you-need-know-0